The importance of water to municipalities
By : J. David Chapman/March 27, 2025
Water is essential to life, public health, and economic development—yet it’s one of the most taken-for-granted resources in modern society. Municipalities work tirelessly to ensure a steady, safe supply, but few citizens understand the complexity and rising costs behind that service.
Water touches every part of a community—drinking, sanitation, firefighting, agriculture, and industry. Yet the infrastructure that delivers it is aging, expensive to maintain, and increasingly subject to new regulations and quality standards. Cities must constantly invest in systems to meet demand and remain compliant.
One growing trend is the move toward water independence. Rather than relying on larger regional suppliers, many municipalities are building and managing their own systems. In Texas, for example, billions are being spent to store water underground through aquifer storage and recovery systems—ensuring a reliable supply during dry seasons and peak demand.
Across the country, water rates are rising as cities fund long-overdue infrastructure upgrades. According to the U.S. Environmental Protection Agency, the nation’s water infrastructure needs over $700 billion in investment over the next 20 years—costs that are now hitting ratepayers at the local level. The American Society of Civil Engineers continues to give U.S. water infrastructure a “D” rating, citing the vast number of systems that need replacement or overhaul.
Cities are also facing a wave of new water quality regulations, requiring costly updates to stay in compliance. These challenges are particularly tough for smaller municipalities that lack the resources of large urban centers. Even in areas with access to ample water, many cities struggle with delivery due to inadequate infrastructure. Fortunately, much of the federal funding from pandemic recovery efforts was directed toward supporting water system upgrades.
When I served on the Edmond City Council from 2019 to 2023, we made our largest infrastructure investment in city history to secure Edmond’s water future. This included a $66 million intake structure at Arcadia Lake, a $500 million water treatment plant expansion, and a $171 million wastewater resource recovery facility—totaling more than $460 million just while I was on council.
These projects were funded through bonds and loans, with debt service covered by the users of the water system. In other words, the water pays for itself. It’s a reminder that while safe, clean water isn’t free, it’s one of the most important investments a city can make.
J. David Chapman, Ph.D., is an associate professor of finance & real estate at The University of Central Oklahoma (jchapman7@uco.edu).